JPY Basket Charting Bullsih Flag

Further to yesterday's article, the USDJPY upswing is still to catch. In this regard, we note that the RSI is above 50 (blue square), which suggests and underlying bullish momentum on the H1 time frame. Moreover, the index looks to have charted a falling flag which is a bullish continuation pattern. i.e. if it completes the next leg should be up. The target for the flag is 10,406. We are now looking to see if the green 5-hour EMA crosses above the orange 10-hour EMA, which may signal the breakout required. If capital flows into the JPY it is likely due to an increase in the risk-off sentiment. Here, the formal statement from the G7 teleconference being held today will be key.